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Management Accounting in Business

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1. What industries do you think will have higher financial slack? Why?
2. There are some companies out there that feel like the end is near so pay out a bunch of returns to investors in panic which is essence is financial slack. Do you think that the SEC can force them to pay that back?
3. If a company is well matured and investors notice that top management is lining their pockets, this could be bad and they might end up not wanting to be investors any longer. Can investors demand to be paid dividends ever?
4. One of the things we have seen with ratios is what balances to use most often as denominators but also in other ways. Companies tend to use beginning balances but some use average balances. Do you think that average balances are the best way to go to get the best ratios? Why or why not?
5. Due to the economy today, do you think that companies' average time on collecting their receivables has gone up? If so, do you think that those companies need to reduce their financial slack by borrowing to cover those receivables they haven't received yet?
6. For what kinds of companies is financial slack most valuable? Are there situations in which financial slack should be reduced by borrowing and paying out the proceeds to the stockholders? Due to the economy today, do you think that companies' average time on collecting their receivables has gone up? If so, do you think that those companies need to reduce their financial slack by borrowing to cover those receivables they haven't received yet?

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The review into financial slack within business operations for sustaining business continuity in managing stockholders and investors. 897 words.

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1. What industries do you think will have higher financial slack? Why?

In review, the types of industries with higher financial slack usually reflect those that consumers most often utilize in addressing needs and wants accordingly. The financial slack is in regards to the amounts of sufficient level of cash along with marketable securities along with real assets that sellable for growth. Try and think of the companies can range from retail industries to technologies that hones on consumer's daily requirement for conducting their lifestyles, hence, the onset of having more products to meeting demand that entails sufficient cash.

2. There are some companies out there that feel like the end is near so pay out a bunch of returns to investors in panic which is essence is financial slack. Do you think that the SEC can force them to pay that back?

Consider the frequency and amounts of such payout of a bunch of returns to investors that will violate any current or future pending SEC enforcement laws or regulations. The market changes can determine the frequency as well as the financial health of the company conducts such behaviors for stability with investors. The challenges reflect the balancing act of accounting for the financial slack warrants such payouts accordingly. Any empirical evidence is warranted for immediate review that the SEC can order for analysis to ...

Solution provided by:
Nichel Anderson, MBA, PhD (IP)
Education
  • BA, American Intercontinental University
  • MBA, American Intercontinental University
  • PhD (IP), Grand Canyon University
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